Posted on 04/27/2020 5:27:19 AM PDT by Enlightened1
Treasury Secretary Steven Mnuchin on Sunday predicted the U.S. economy hit hard by the coronavirus pandemic would rebound this summer and early in the fall even as Fox News’s Chris Wallace noted most experts have projected a longer, slower recovery.
“I think as we begin to reopen the economy in May and June you’re going to see the economy really bounce back in July, August, September,” Mnuchin said on “Fox News Sunday.”
“We are putting an unprecedented amount of fiscal relief into the economy," he added. "You’re seeing trillions of dollars that’s making its way into the economy, and I think this is going to have a significant impact.”
Wallace, however, noted that the Congressional Budget Office recently predicted the economy will contract by 5.6 percent for the year and that unemployment will peak at 16 percent in the third quarter.
In response, Mnuchin said that “we’ve never seen anything like this,” in reference to the pandemic. “We’ve closed the economy, and we’re going to open the economy. ... This is not the financial crisis [of 2008].”
Wallace also asked Mnuchin about the Paycheck Protection Program, the small-business loan fund that ran dry in mid-April and was later found to have awarded loans to major chains such as Ruth’s Chris Steak House and Shake Shack, both of which have since returned the aid.
“I just want to put this in perspective. We launched a brand-new program in an incredibly short period of time. ... The fact that we ran out of money just shows the success of this,” Mnuchin responded, noting that the program has since implemented guidance aimed at keeping more loans from going to national chains.
“I think you’re going to see this move in the right direction, and I think you’re also going to see
(Excerpt) Read more at thehill.com ...
OK, let’s start taking bets on when Birx or Fauci is going to say something to the press that will totally cut his legs out from under him.
I’m taking 3:42 Eastern Time today.
I think sectors of the economy that involve discretionary activity is going to take years to recover. If I owned a hotel, for example, I’d be turning it into a Section 8 housing complex right now.
I don’t trust Mr. Goldman Skull and Bones for a minute.
From his wikipedia page:
“Between 1995 and 2014, he donated over $120,000 to political organizations, PACs, politicians, and political parties. His contributions to candidates included 11 donations to Republicans and 36 donations to Democrats. The campaigns of Al Gore, Hillary Clinton, John Kerry, Barack Obama, and Mitt Romney were among those to which he donated money.[52] Mnuchin said most of those donations were favors for friends.[32]”
End the lockdowns NOW.
It’s that simple really.
Most of the recently laid of will get back to work if the lockdowns are ended now. There is a huge pent up demand for services like barber shops, hair dressers and every kind of service that people have been forced to put aside because of the lockdowns. And people have stimulus money to spend.
Hear hear!!!
BINGO.
I haven’t heard Trump criticize anyone other than Kemp on this, so I suspect there’s more to this story than what’s been reported.
“The worst is over without a doubt.” James J. Davis Secretary of Labor. -June 29, 1930
Oh, I think Mnuchin is an OK guy ... although I’m having a difficult time forgiving him for ruining my spellcheck app.
I get what you;re saying but lots of businesses will never recover and won’t survive. Just too much financial damage to overcome. A wicked combo of collapsed margins, unpayable debt and demand destruction.
As much as I hate to say it there is some very bad economic data yet to come out.
I am not sure what discretionary spending means any longer, so many people eat out ALL of the time or pay $5 for a dang cup of coffee. I agree things may not be going gangbusters like it has been but not 10-20 years to recover.
Just in time for the October surprise...
Lot's of those areas are being propped up by the Fed. The 'little' guys are out there with no such luck.
The same goes for something like sports and entertainment. Stadiums and theaters aren’t going to double in size when these things get back open.
For many industries, lost business is just that — LOST business.
All true.
A lot of small businesses will take a big hit. No question about that. Others, like barbers, cell phone shops etc will get a boost from pent up demand and quickly make up the lost income.
But for that to happen, the lockdowns must end NOW.
Maybe, if it ever opens.
Your post is Economics 101, and spot-on.
Funny that a guy from Yale doesn’t seem to get it.
Experience the reaction of others when you come within 10 feet of them.
Read the comments below articles enthusiastically supporting the announcement that government is extending the shutdown of the economy indefinitely.
The average American is scared sh*tless right now and won't be going anywhere until the media and Dr. Fauci tell them it's ok.
For many, it's better to be broke and starving then dead. Government will save them and protect them.
When things reopen be sure to tip really well.
Barbers, waiters and other service employees are sure to have a tough year no matter what.
Guy is clueless. Every single one of my business clients have put any expansion and of course hiring to a halt.
They are burning through their cash savings.
It will take 2-3 years maybe longer to get back.
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